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Chapter 1: Introduction to Project Management

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Title: Chapter 1: Introduction to Project Management


1
Chapter 1 Introduction to Project Management
Information Technology Project Management, Fourth
Edition
2
Learning Objectives
  • Understand the growing need for better project
    management, especially for information technology
    projects.
  • Explain what a project is
  • provide examples of information technology
    projects
  • list various attributes of projects
  • describe the triple constraint of projects.

3
Learning Objectives
  • Describe project management and discuss key
    elements of the project management framework
  • including project stakeholders
  • the project management knowledge areas
  • common tools and techniques
  • project success factors.
  • Understand the role of the project manager
  • by describing what project managers do
  • what skills they need
  • what the career field is like for information
    technology project managers.

4
Learning Objectives
  • Describe the project management profession
  • including its history
  • the role of professional organizations such as
    the Project Management Institute
  • the importance of certification and ethics
  • the growth of project management software.

5
Learning Objectives
  • How the changing business environment impacts IT.
  • The changing realities within the Information
    Technology field.
  • The corporate view of technology.
  • How the best practices approach impacts projects.
  • The value of benchmarking.
  • The difference between best in class versus world
    class.
  • Why quality is important in a project.
  • The five perspectives of quality.
  • The product, process, and business perspectives
    on quality.

6
Introduction
  • Many organizations today have a new or renewed
    interest in project management.
  • Computer hardware, software, networks, and the
    use of interdisciplinary and global work teams
    have radically changed the work environment.
  • The U.S. spends 2.3 trillion on projects every
    year, or one-quarter its gross domestic product,
    and the world as a whole spends nearly 10
    trillion of its 40.7 gross product on projects
    of all kinds.

PMI, The PMI Project Management Fact Book,
Second Edition, 2001.
7
Project Management Statistics
  • Worldwide IT spending continues to grow, and
    Forrester Research predicts that U.S. IT spending
    will grow by another 5.7 percent in 2005, to
    reach 795 billion.
  • In 2003, the average senior project manager in
    the U.S. earned almost 90,000 per year, and the
    average Project Management Office (PMO) Director
    earned more than the average Chief Information
    Officer (118,633 vs. 103,925).
  • The Apprentice, the number-one U.S. reality
    television show in 2004, portrayed the important
    role of project managers.

Butler, Steve, IT Spending, Analyst Views,
February 2004. PMI, Project Management Salary
Survey, Third Edition, 2003.
8
Motivation for Studying Information Technology
(IT) Project Management
  • IT projects have a terrible track record.
  • A 1995 Standish Group study (CHAOS) found that
    only 16.2 percent of IT projects were successful
    in meeting scope, time, and cost goals.
  • Over 31 percent of IT projects were canceled
    before completion, costing over 81 billion in
    the U.S. alone.
  • The Standish Group, The CHAOS Report
    (www.standishgroup.com) (1995). Another reference
    is Johnson, Jim, CHAOS The Dollar Drain of IT
    Project Failures, Application Development Trends
    (January 1995).

9
Advantages of Using Formal Project Management
  • Better control of financial, physical, and human
    resources.
  • Improved customer relations.
  • Shorter development times.
  • Lower costs.
  • Higher quality and increased reliability.
  • Higher profit margins.
  • Improved productivity.
  • Better internal coordination.
  • Higher worker morale (less stress).

10
Introduction to IT Project Mgmt Mgrs
  • IT Project Mgrs play a key role in project
    success.
  • More professionals are seeking more
    education/certification in Project Mgmt.
  • PMIissues PMPclaimed to have 40K in 2002 and
    57K
  • CompTia offers Project
  • Fortune Magazine has called it Career Number 1
  • Average salary according to a 2000 report was
    87,800 and some project mgrs can make up to
    100K in base pay

11
Table 1-5. Top Ten Most In-Demand IT Skills
12
The Project Management Profession
  • Professional societies such as the Project
    Management Institute (PMI) have grown
    significantly.
  • There are specific interest groups in many areas,
    such as engineering, financial services, health
    care, and IT.
  • Project management research and certification
    programs continue to grow.

13
Project Management Certification
  • PMI provides certification as a Project
    Management Professional (PMP).
  • A PMP has documented sufficient project
    experience, agreed to follow a code of ethics,
    and passed the PMP exam.
  • The number of people earning PMP certification is
    increasing quickly.
  • PMI and other organizations are offering new
    certification programs (see Appendix B).

14
Figure 1-7. Growth in PMP Certification, 1993-2003
15
Figure 1-3. Top Information Technology Skills
Percentage of Respondents
Information Technology (IT) Skill
Cosgrove, Lorraine, January 2004 IT Staffing
Update, CIO Research Reports (February 3, 2004).
16
What Is a Project?
  • A project is a temporary endeavor undertaken to
    create a unique product, service, or result.
  • Operations is work done to sustain the business.
  • A project ends when its objectives have been
    reached, or the project has been terminated.
  • Projects can be large or small and take a short
    or long time to complete.

PMI, A Guide to the Project Management Body of
Knowledge (PMBOK Guide) (2004), p. 5.
17
Examples of IT Projects
  • A help desk or technical worker replaces laptops
    for a small department.
  • A small software development team adds a new
    feature to an internal software application.
  • A college campus upgrades its technology
    infrastructure to provide wireless Internet
    access.

18
Examples of IT Projects
  • A cross-functional task force in a company
    decides what software to purchase and how it will
    be implemented.
  • A television network develops a system to allow
    viewers to vote for contestants and provide other
    feedback on programs.
  • A government group develops a system to track
    child immunizations.

19
Project Attributes
  • A project
  • Has a unique purpose.
  • Is temporary.
  • Is developed using progressive elaboration.
  • Requires resources, often from various areas.
  • Should have a primary customer or sponsor.
  • The project sponsor usually provides the
    direction and funding for the project.
  • Involves uncertainty.

20
Project and Program Managers
  • Project managers work with project sponsors,
    project teams, and other people involved in
    projects to meet project goals.
  • Program A group of related projects managed in
    a coordinated way to obtain benefits and control
    not available from managing them individually.
  • Program managers oversee programs and often act
    as bosses for project managers.

PMI, A Guide to the Project Management Body of
Knowledge (PMBOK Guide) (2004), p. 16.
21
The Triple Constraint
  • Every project is constrained in different ways by
    its
  • Scope goals What work will be done?
  • Time goals How long should it take to complete?
  • Cost goals What should it cost?
  • It is the project managers duty to balance these
    three often-competing goals.

22
Figure 1-1. The Triple Constraint of Project
Management
Successful project management means meeting all
three goals (scope, time, and cost) and
satisfying the projects sponsor!
23
What is Project Management?
  • Project management is the application of
    knowledge, skills, tools and techniques to
    project activities to meet project
    requirements.

PMI, A Guide to the Project Management Body of
Knowledge (PMBOK Guide) (2004), p. 8.
24
Figure 1-2. Project Management Framework
25
Project Stakeholders
  • Stakeholders are the people involved in or
    affected by project activities.
  • Stakeholders include
  • Project sponsor
  • Project manager
  • Project team
  • Support staff
  • Customers
  • Users
  • Suppliers
  • Opponents to the project

26
Nine Project Management Knowledge Areas
  • Knowledge areas describe the key competencies
    that project managers must develop.
  • Four core knowledge areas lead to specific
    project objectives
  • Scope
  • Time
  • Cost
  • quality
  • Four facilitating knowledge areas are the means
    through which the project objectives are achieved
  • human resources
  • Communication
  • Risk
  • procurement management
  • One knowledge area (project integration
    management) affects and is affected by all of the
    other knowledge areas.
  • All knowledge areas are important!

27
Project Management Tools and Techniques
  • Project management tools and techniques assist
    project managers and their teams in various
    aspects of project management.
  • Specific tools and techniques include
  • Project charters, scope statements, and WBS
    (scope).
  • Gantt charts, network diagrams, critical path
    analyses, critical chain scheduling (time).
  • Cost estimates and earned value management
    (cost).
  • See Table 1-1 for other examples.

28
Project Portfolio Management
  • Many organizations support an emerging business
    strategy of project portfolio management
  • Organizations group and manage projects as a
    portfolio of investments that contribute to the
    entire enterprises success. (For more
    information, see Chapter 7, Project Cost
    Management.)

29
Improved Project Performance
  • The Standish Groups CHAOS studies show
    improvements in IT projects in the past decade.

The Standish Group, Latest Standish Group CHAOS
Report Shows Project Success Rates Have Improved
by 50 (March 25, 2003).
30
Why the Improvements?
  • The reasons for the increase in successful
    projects vary. First, the average cost of a
    project has been more than cut in half. Better
    tools have been created to monitor and control
    progress and better skilled project managers with
    better management processes are being used. The
    fact that there are processes is significant in
    itself.
  • The Standish Group, CHAOS 2001 A Recipe
    for Success (2001).

31
Project Success Factors
  • 1. Executive support
  • 2. User involvement
  • 3. Experienced project manager
  • 4. Clear business objectives
  • 5. Minimized scope
  • 6. Standard software infrastructure
  • 7. Firm basic requirements
  • 8. Formal methodology
  • 9. Reliable estimates
  • 10. Other criteria, such as small milestones,
    proper planning, competent staff, and ownership

The Standish Group, Extreme CHAOS (2001).
32
What the Winners Do
  • Recent research findings show that companies that
    excel in project delivery capability
  • Use an integrated project management toolbox that
    includes standard and advanced tools and lots of
    templates.
  • Grow project leaders, emphasizing business and
    soft skills.
  • Develop a streamlined project delivery process.
  • Measure project health using metrics, including
    customer satisfaction and return on investment.

Milosevic, Dragan and And Ozbay, Delivering
Projects What the Winners Do, Proceedings of
the Project Management Institute Annual Seminars
Symposium (November 2001).
33
The Role of the Project Manager
  • Job descriptions vary, but most include
    responsibilities such as planning, scheduling,
    coordinating, and working with people to achieve
    project goals.
  • Remember that 97 percent of successful projects
    were led by experienced project managers.

34
Table 1-3. Fifteen Project Management Job
Functions
  • Define scope of project.
  • Identify stakeholders, decision-makers, and
    escalation procedures.
  • Develop detailed task list (work breakdown
    structures).
  • Estimate time requirements.
  • Develop initial project management flow chart.
  • Identify required resources and budget.
  • Evaluate project requirements.
  • Identify and evaluate risks.
  • Prepare contingency plan.
  • Identify interdependencies.
  • Identify and track critical milestones.
  • Participate in project phase review.
  • Secure needed resources.
  • Manage the change control process.
  • Report project status.

Northwest Center for Emerging Technologies,
Building a Foundation for Tomorrow Skills
Standards for Information Technology, Belleview,
WA, 1999.
35
Suggested Skills for Project Managers
  • Project managers need a wide variety of skills.
  • They should
  • Be comfortable with change.
  • Understand the organizations they work in and
    with.
  • Lead teams to accomplish project goals.

36
Suggested Skills for Project Managers
  • Project managers need both hard and soft
    skills.
  • Hard skills include product knowledge and knowing
    how to use various project management tools and
    techniques.
  • Soft skills include being able to work with
    various types of people.

37
Suggested Skills for Project Managers
  • Communication skills Listens, persuades.
  • Organizational skills Plans, sets goals,
    analyzes.
  • Team-building skills Shows empathy, motivates,
    promotes esprit de corps.
  • Leadership skills Sets examples, provides vision
    (big picture), delegates, positive, energetic.
  • Coping skills Flexible, creative, patient,
    persistent.
  • Technology skills Experience, project knowledge.

38
Media Snapshot Good Project Management Skills
from The Apprentice
  • Leadership and professionalism are crucial.
  • Know what your sponsor expects from the project,
    and learn from your mistakes.
  • Trust your team and delegate decisions.
  • Know the business.
  • Stand up for yourself.
  • Be a team player.
  • Stay organized and dont be overly emotional.
  • Work on projects and for people you believe in.
  • Think outside the box.
  • There is some luck involved in project
    management, and you should always aim high.

39
Table 1-4. Most Significant Characteristics of
Effective and Ineffective Project Managers
40
Importance of Leadership Skills
  • Effective project managers provide leadership by
    example.
  • A leader focuses on long-term goals and
    big-picture objectives while inspiring people to
    reach those goals.
  • A manager deals with the day-to-day details of
    meeting specific goals.
  • Project managers often take on both leader and
    manager roles.

41
History of Project Management
  • Some people argue that building the Egyptian
    pyramids was a project, as was building the Great
    Wall of China.
  • Most people consider the Manhattan Project to be
    the first project to use modern project
    management.
  • This three-year, 2 billion (in 1946 dollars)
    project had a separate project and technical
    managers.

42
Key People in Early Project Mgmt
  • Frederick Taylor (1856-1915) an American
    industrialist and early pioneer of mgmt
    techniques.
  • In 1911 Taylor publishes a book Principles of
    Scientific Management, where he proposed work
    methods designed to increase worker productivity.

43
Taylors Management Principles
  • Analyze each job to specify optimal procedures
  • Match skills with tasks to be accomplished
  • Understand worker characteristics that are
    important for increased productivity
  • Train workers to be more productive
  • Set a fair days work standard for productivity
  • Document worker performance
  • Reward performance with incentives and bonuses

44
Henry Gantt (1861-1919)
  • Became famous for developing the Gantt chart that
    is used in project mgmt.
  • Invented techniques such as
  • Milestone deliverables
  • Task durations
  • Estimate
  • Interesting enough his techniques have been
    virtually unchanged for over 100 years

45
  • The WBS is shown on the left, and each tasks
    start and finish dates
  • are shown on the right. First used in 1917, early
    Gantt charts were
  • drawn by hand.

46
Figure 1-5. Sample Network Diagram
Each box is a project task from the WBS. Arrows
show dependencies between tasks. The bolded tasks
are on the critical path. If any task on the
critical path takes longer to complete than
planned, the whole project will slip unless
something is done. Network diagrams were first
used in 1958 on the Navy Polaris project before
project management software was available.
47
Dr. W. Edwards Deming
  • Often referred to as the father of quality.
  • His focus on quality led to the formation of the
    American Society of Quality Control
  • His techniques were first rebuked by US mgrs and
    were instead made famous by Japanese adoption.
  • Deming realized that mgmt was wrong to be
    committed to quotas and punishing for
    mistakesinstead they would have to be visionary
    leaders to achieve quality.

48
Demings 14 Points
  • Create constancy of purpose for the improvement
    of all products and services
  • Adopt new management philosophy.
  • Cease dependence on mass inspection
  • End the practice of awarding business on price
    tag alone
  • Improve constantly and forever the system of
    production and service
  • Establish training and retraining

49
Demings 14 Points Cont
  • Create mgmt leadership
  • Drive out fear-do not punish for mistakes
  • Break down barriers between staff areas
  • Eliminate slogans, targets for the workforce
  • Eliminate numerical quotas
  • Remove barriers to pride of proficiency
  • Institute a vigorous and continuous program of
    education
  • Tack action to accomplish the transformation

50
Project Management Office (PMO)
  • A PMO is an organizational group responsible for
    coordinating the project management function
    throughout an organization.
  • Possible goals include
  • Collect, organize, and integrate project data for
    the entire organization.
  • Develop and maintain templates for project
    documents.
  • Develop or coordinate training in various project
    management topics.
  • Develop and provide a formal career path for
    project managers.
  • Provide project management consulting services.
  • Provide a structure to house project managers
    while they are acting in those roles or are
    between projects.

51
Project Management Software
  • Enterprise PM software integrates information
    from multiple projects to show the status of
    active, approved, and future projects across an
    entire organization.
  • It also provides links to more detailed
    information on each project.
  • Many managers like to see status in color red,
    yellow, and green.

52
Figure 1-6. Sample Enterprise Project Management
Tool
53
Ethics in Project Management
  • Ethics is an important part of all professions.
  • Project managers often face ethical dilemmas.
  • In order to earn PMP certification, applicants
    must agree to the PMP code of professional
    conduct.
  • Several questions on the PMP exam are related to
    professional responsibility, including ethics.

54
Project Management Software
  • There are currently hundreds of different
    products to assist in performing project
    management.
  • Three main categories of tools
  • Low-end tools Handle single or smaller projects
    well cost under 200 per user.
  • Midrange tools Handle multiple projects and
    users cost 200-500 per user Project 2003 most
    popular (includes an enterprise version).
  • High-end tools Also called enterprise project
    management software often licensed on a per-user
    basis VPMi Enterprise Online (www.vcsonline.com).

55
Changing Business Environment
  • IT flexibility is needed in the changing business
    environment.
  • Competition has moved to a more global platform
    for industries.
  • Companies must now deliver quality, efficient,
    market-driven strategies that require an IT
    intensive set of procedures.

56
Corporate Behavior Changes
  • Historically
  • Functional hierarchy
  • Monopolistic, regulated
  • Stable, predictable conditions
  • Reactive
  • Energy
  • Loyalty and seniority
  • Mergers and acquisitions
  • Traditional sales approach
  • Operational support
  • Future
  • Teams or networks
  • Competitive, free market
  • Dynamic business conditions
  • Proactive, flexible, adaptive
  • Targeted services
  • Performance
  • Strategic alliances
  • Aggressive acquisition
  • Strategic enabler of business vision

57
Impact on IT
  • IT has changed significantly from the past
    environments.
  • IT is now integrated into critical business
    strategies.
  • Senior management is more involved in IT
    planning.
  • Modular client / server systems are more
    prevalent.
  • Rapid development cycles replaced long
    development projects.
  • Customer needs and demands are more important in
    system development requirements.

58
Corporate View of Technology
  • Six 6 fundamental principles make the most of IT
  • Align all IT decisions, actions, and measurement
    of performance with the business strategy of the
    organization as a while adds value to the
    business.
  • Most effective applications of technology emerge
    from industry-specific applications that make it
    possible to do new things of value in the
    marketplace.
  • Technologies evolve fast enough that new
    economies of scale and new functions become
    cost-effective or practical, providing new
    opportunities to use information technology in
    innovative, productive ways.

59
Corporate View of Technology
  • (Continued)
  • Best practices in IT require a coordinated and
    effective use of many resources simultaneously
    best organization, best skills, best people, best
    processes, and best computing.
  • Reorganizing organizations and redesigning work
    flows to make them technology friendly are
    rapidly turning out to be of key importance to
    improving the value of IT.
  • Since technology and business circumstances keep
    changing, the habits of continuous improvement,
    being curious to learn how others do things, and
    adopting the most relevant practices for your
    companys operations are crucial to success.

60
Best Practices
  • A best practice is defined as
  • Processes that are recognized as being the best
    by function or within an industry.
  • Benefits of best practices include
  • Inspiration
  • Benchmarking
  • References
  • Skills Transfer
  • Continuous Improvement

61
Best Practice Pitfalls
  • Five best practice implementation pitfalls
    include
  • Copying a practice as is.
  • This can be a quick fix when you copy another
    organizations best practice. However, it does
    not address the specifics of your organization.
  • Failing to verify a best practice.
  • You make an assumption a practice you see at
    another company is a best practice without
    validating your assumption is true. If you
    compare this practice to your business
    activities, you may find you already have a
    better practice implemented.

62
Best Practice Pitfalls
  • (Continued)
  • Not keeping current.
  • If your business does not continue to improve and
    innovate, you are not keeping current. You need
    to understand if your business is current with
    practices or if you are falling behind others who
    continue to innovate and improve.
  • Not establishing relevance.
  • This occurs when a business does not align the
    practices with their overall business goals. At
    times, this practice may be popular, but not
    relevant to the business. Understanding success
    criteria can help alleviate problems with this
    practice.

63
Best Practice Pitfalls
  • (Continued)
  • Following trends.
  • The identified practice may be a fad in the
    business world. You must understand how this
    trend will help your business reach its
    objectives. Business politics can initiate this
    bad practice through individuals looking for a
    way to stand out among their co-workers.

64
Role of Benchmarking
  • Benchmarking can help identify best practices.
  • Benchmarking can be
  • Measurement-based
  • These are often used to measure vendor
    performance, data center audits, product testing,
    and cost measurements.
  • Process-based
  • These are often used to help IT learn how to
    improve the value of a process.
  • Process-based benchmarking is expensive but it
    moves into the core of best practices.

65
World-Class, Best in Class
  • Organizations must be competitive
  • Best in Class is when you are the best at
    something within your industry.
  • World Class is when you are the best at something
    across industries.

66
Quality
  • What is a Quality Project?
  • A product that meets or exceeds customer
    expectations.
  • Quality Perspectives
  • Ideal View
  • User View
  • Manufacturing View
  • Product View
  • Value-based View

67
Quality Type Examples
  • Ideal View
  • Quality is conceived in the minds eye.
  • This is an ideal we would like to achieve.
  • User View
  • Measure of quality from the users perspective.
  • Manufacturing View
  • Defines how quality conforms to manufacturing
    specifications.
  • Quality is measured during production and after
    delivery to the customer.

68
Quality Type Examples
  • Product View
  • Looks at product quality from the inside-out,
    whereas the User and manufacturing perspectives
    look at quality from the outside-in.
  • Value-based View
  • Quality is determined by the amount the customer
    is willing to pay. The automobile market is an
    example of a value based quality perspective.

69
Product Quality
  • A quality product should
  • Perform as expected.
  • Be learned easily.
  • Operate intuitively.
  • Have a goal of zero development defects.

70
Process Quality
  • A quality process should consider
  • Where problems may occur.
  • When problems may surface.
  • How faults can be identified early in the
    project.
  • If fault management processes could detect and
    fix problems early.
  • If options exist to streamline the process,
    reduce complexity, and increase quality.

71
Business Perspective Quality
  • Business quality should consider how technical
    quality translates to business value or quality.
  • Quality measurements
  • Product up versus down time
  • Maintenance costs
  • Costs associated with product modifications
  • Dependent on expensive technology?

72
Chapter Summary
  • As the number and complexity of projects continue
    to grow, it is becoming even more important to
    practice good project management.
  • A project has several attributes, such as being
    unique, temporary and developed incrementally.
  • A framework for project management includes
    project stakeholders, the nine knowledge areas,
    tools and techniques, and creating project
    portfolios to ensure enterprise success.
  • Successful project managers must possess and
    development many skills and lead their teams by
    example.
  • The project management profession continues to
    mature as more people become certified and more
    tools are created.

73
Summary Continued
  • IT is now a part of a corporations strategic
    planning.
  • Changes in information technology add more
    demands to the business and technology
    professionals.
  • Best practices give companies ideas to improve
    operations.
  • Benchmarking provide a measurement tool for
    comparison.
  • Quality should be integrated into the business
    and projects
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